STOCK BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK BASED COMPENSATION PLANS

15. STOCK BASED COMPENSATION PLANS

Equity Incentive Plan

The Bridge Bancorp, Inc. 2012 Stock-Based Incentive Plan (the “2012 Equity Incentive Plan”) provides for the grant of stock-based and other incentive awards to officers, employees and directors of the Company. The plan superseded the Bridge Bancorp, Inc. 2006 Equity Incentive Plan. The number of shares of common stock of Bridge Bancorp, Inc. available for stock-based awards under the 2012 Equity Incentive Plan is 525,000 plus 278,385 shares that were remaining under the 2006 Equity Incentive Plan. Of the total 803,385 shares of common stock approved for issuance under the 2012 Equity Incentive Plan, 411,748 shares remain available for issuance at December 31, 2017, including shares that may be granted in the form of restricted stock awards or restricted stock units.

The Compensation Committee of the Board of Directors determines awards under the 2012 Equity Incentive Plan. The Company accounts for the 2012 Equity Incentive Plan under FASB ASC No. 718.

Stock Options

The fair value of each option granted is estimated on the date of the grant using the Black-Scholes option-pricing model. No new grants of stock options were awarded during the years ended December 31, 2017, 2016 and 2015 and there was no compensation expense attributable to stock options for the years ended December 31, 2017, 2016 and 2015 because all stock options were vested. There were no stock options outstanding as of December 31, 2017 and 2016.

The following table summarizes stock option exercise activity:

	Year Ended December 31,
(In thousands)	2017		2016		2015
Intrinsic value of options exercised	$	—	$	115	$	52
Cash received from options exercised		—		62		80
Tax benefit realized from option exercised		—		—		—

Restricted Stock Awards

The following table summarizes the unvested restricted stock activity for the year ended December 31, 2017:

	Shares			Weighted Average Grant-Date Fair Value
Unvested, January 1, 2017		301,991		$	24.59
Granted		71,781		$	35.61
Vested		(47,867	)	$	23.62
Forfeited		(8,213	)	$	27.07
Unvested, December 31, 2017		317,692		$	27.16

During the year ended December 31, 2017, restricted stock awards of 71,781 shares were granted. Of the 71,781 shares granted, 31,860 shares vest over seven years with a third vesting after years five, six and seven, 25,396 shares vest over five years with a third vesting after years three, four and five, 11,070 shares vest ratably over three years and 3,455 shares vest ratably over nine months. During the year ended December 31, 2016, the Company granted restricted stock awards of 69,309 shares. Of the 69,309 shares granted, 36,000 shares vest over seven years with a third vesting after years five, six and seven, 27,709 shares vest over five years with a third vesting after years three, four and five, and 5,600 shares vest ratably over three years. During the year ended December 31, 2015, the Company granted restricted stock awards of 71,187 shares. Of the 71,187 shares granted, 30,625 shares vest over seven years with a third vesting after years five, six and seven, 24,812 shares vest over five years with a third vesting after years three, four and five, 10,550 shares vest ratably over five years, 4,000 shares vest ratably over three years and 1,200 shares vest ratably over two years. Compensation expense attributable to these awards was $1.7 million, $1.5 million and $1.3 million for the years ended December 31, 2017, 2016 and 2015, respectively. The total fair value of shares vested during the years ended December 31, 2017, 2016 and 2015, was $1.1 million, $935 thousand and $732 thousand, respectively. As of December 31, 2017, there was $5.0 million of total unrecognized compensation costs related to non-vested restricted stock awards granted under the 2012 Equity Incentive Plan and the 2006 Equity Incentive Plan. The cost is expected to be recognized over a weighted-average period of 3.92 years.

Restricted Stock Units

Effective in 2015, the Board revised the design of the Long Term Incentive Plan (“LTI Plan”) for Named Executive Officers to include performance-based awards. The LTI Plan includes 60% performance vested awards based on three-year relative Total Shareholder Return to the proxy peer group and 40% time vested awards. The awards are in the form of restricted stock units which cliff vest after five years and require an additional two year holding period before being delivered in shares of common stock. The Company recorded expense of $309 thousand, $193 thousand and $81 thousand in connection with these awards for the years ended December 31, 2017, 2016 and 2015, respectively.

In April 2009, the Company adopted a Directors Deferred Compensation Plan (“Directors Plan”). Under the Directors Plan, independent directors may elect to defer all or a portion of their annual retainer fee in the form of restricted stock units. In addition, directors receive a non-election retainer in the form of restricted stock units. These restricted stock units vest ratably over one year and have dividend rights but no voting rights. In connection with the Directors Plan, the Company recorded expense of $530 thousand, $493 thousand and $342 thousand for the years ended December 31, 2017, 2016 and 2015, respectively.